CHALLENGES OF TRADITIONAL MANAGEMENT ACCOUNTING IN THE FACE OF CONTEMPORARY DEVELOPMENTS

Management accounting has undergone significant transformation over the years, evolving from traditional cost-focused methods to more advanced, technology-driven approaches. Traditional management accounting techniques, such as standard costing, variance analysis, absorption costing, and budgetary control, have been instrumental in shaping financial decision-making processes. These methods have provided businesses with structured frameworks for cost allocation, performance measurement, and financial planning. However, with the increasing complexity of business operations, globalization, and rapid technological advancements, contemporary management accounting methods have gained prominence. Techniques such as activity-based costing (ABC), balanced scorecards, lean accounting, and predictive analytics which are tools of Strategic Management Accounting (SMA) offer more flexible and data-driven approaches, allowing businesses to make informed strategic decisions in real time. This study aims to compare traditional and strategic management accounting methods, analyzing their strengths, weaknesses, and applicability in today's corporate environment. By exploring the key differences and recent developments, this research seeks to determine whether traditional management accounting techniques remain relevant or if modern approaches have become indispensable in financial decision-making. The findings of this study will provide valuable insights into how businesses can optimize their management accounting strategies to meet the demands of an increasingly dynamic and competitive marketplace.